The top 10 exchange wallets on these networks have seen their supplies decrease. The "top 10 exchange wallets" are the ten biggest wallets connected to centralised exchanges, which are the biggest investors in the market. Therefore, the trend in their combined supply is worth keeping an eye on for any cryptocurrency.

Usually, buying from the whales is a bullish sign for any asset, but here, the size of the wallets goes down instead. In this case, however, the addresses in question are those attached to exchanges rather than self-custodial wallets. Investors usually keep their coins on exchanges whenever they plan to trade them shortly, so the coins sitting in the supply of these platforms can represent the available sell supply of the asset. As such, the exchange supply recently heading down for SHIB, LINK, and ETH implies that a potential reduction in selling pressure has occurred for these markets.

As the wallets being considered here are the ten largest associated with these platforms, the withdrawals may provide a particularly bullish signal, as it suggests mega whales are possibly interested in holding their coins in the long term. From the chart, it’s visible that Chainlink and Ethereum saw rapid withdrawals from these large holders at once around the end of May, and since then, the metric has been moving sideways for them. On the other hand, Shiba Inu saw a rise instead at first and then a couple of waves of outflows, the latest of which occurred during just the past week. Thus, it’s possible that while LINK and ETH whales seem to be finished with their withdrawals, SHIB’s outflows could still be underway.

As is visible in the above graph, the size of the top 10 exchange whales has recently decreased for all three cryptocurrencies. More particularly, since late May, Shiba Inu has seen this metric decline by 2.4%, Chainlink by 2.9%, and Ethereum by 8.6%. At the time of writing, Shiba Inu is trading around $0.0000216, down more than 13% over the last seven days. Data from on-chain analytics firm Arkham Intelligence reveals significant activity involving Shiba Inu on cryptocurrency exchanges. Within 24 hours, whale addresses transferred over 1.3 trillion SHIB tokens, valued at roughly $30 million.

While some of these transactions involved movement between unknown wallets, a notable trend was noticed – a net outflow of SHIB from exchanges. This pattern, totaling over 705.9 billion SHIB ($16.5 million), suggests a potential shift in investor sentiment. Traditionally, the transfer of cryptocurrency from exchanges to private wallets can indicate a long-term holding strategy, potentially reducing sell pressure on the market. The most significant outflow originated from a Coinbase hot wallet, commonly used to facilitate withdrawal requests. This single transaction involved the movement of 343.5 billion SHIB, valued at $7.92 million.

In addition to the massive outflow from Coinbase, Arkham Intelligence identified other significant transactions involving large amounts of SHIB leaving cryptocurrency exchanges. One such instance involved a major crypto trading platform and market maker, B2C2 Group. It witnessed a transfer of 100 billion SHIB, valued at roughly $2.31 million, from one of its wallets. An interesting outlier in this trend was Robinhood, a popular online brokerage platform. They received an inflow of 88.1 billion SHIB. While this might seem contradictory, it may represent a large investor moving their holdings to Robinhood for other purposes, not necessarily for immediate selling.

Finally, Kraken, another cryptocurrency exchange, experienced two separate outflows. The first involved the withdrawal of 87.4 billion SHIB ($2 million) from a hot wallet. The second transaction saw 86.7 billion SHIB ($1.99 million) moved out of a Kraken deposit address. The net outflow of SHIB from exchanges could be interpreted as a bullish sign for the token’s price. By removing a significant portion of the circulating supply from exchanges, these large investors might be contributing to potential scarcity in the short term. However, it’s important to remember that the cryptocurrency market is complex and influenced by various factors beyond exchange flows. The recent activity on cryptocurrency exchanges highlights the dynamic nature of the SHIB market. While the outflow trend suggests a potential shift in investor sentiment, close monitoring of on-chain data and broader market conditions will be crucial to understand the long-term implications for the price of Shiba Inu.